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Crypto Currencies - a market with a golden future?

October 13, 2019
Reading time: 5 minutes

Legendary are the reports about the riches that some investors have accumulated with the help of crypto currencies. They started in the first hour and have now accumulated a yield in the four-digit range. In addition one hears again and again that in some countries gigantic server farms developed, in which Bitcoins are gained. What is it about these currencies and how can you earn money with them?

How do crypto currencies work?

The first crypto currency known worldwide was the Bitcoin. To this day, nobody knows who came up with the logic behind digital money.

What was new about Bitcoin was that it enabled payment transactions to be made anonymous using blockchain technology. This means that people can move gigantic amounts of money from A to B outside the banking system and nobody knows who is behind it.

The first users of Bitcoin were accordingly many criminals. But also many curious people and tech pioneers, as well as risk investors, who have now made incomprehensibly large profits.

Other crypto currencies function according to a similar principle, offering only the one or other characteristic which makes them special.

How can one earn money with crypto currencies?

Crypto currencies are now considered to be almost like any other currency. As a result, they can also be traded on the stock markets. There are platforms and trading places for this.

There are also lots of blogs and news sites that provide investors with crypto currency news.

As with any other economic good, prices are determined by supply and demand. The volatility of this market is relatively high. One reason for this is that the initial profits have attracted many imitators. This means that the money boosts are reaching the stock markets in waves. While in the beginning there were only a few gamblers, now regular funds are already investing in digital money.

Private investors can participate in trading by looking for an appropriate broker where trading in crypto currencies works. You can act as a day trader or invest long-term. Some also use automated trading software, such as Bitcoin Superstar. This tool should be suitable for automatically interpreting trends and signals and making the transactions on its own.

What opportunities does the market still offer today?

Some people say that the great days of crypto currencies are over. Supposedly it is saturated or overheated. Others say that Bitcoin and the others are only just beginning.

One cannot make completely clear statements here. Anonymous payments are an absolute nightmare for many governments around the world. Terrorists, drug cartels and other criminal elements can easily launder money and move millions with their help. It could therefore well be that one day countries such as the USA, China or the members of the EU will decide together to ban all crypto currencies.

On the other hand, there are also opinions that this is exactly what will not happen. Instead, governments are letting these things go and secretly trying to hack into the system. They secretly get a good overview of illegal payments and can then grab the criminals even more easily than ever before.

Whether the market is saturated or overheated, no one knows the exact answer. Many non-professionals also trade on the stock markets. With the crypto currencies it is rather humans, who have certain knowledge of stock exchange transactions. If, however, the press releases about massive price increases increase, then all those panic get, which are afraid to miss a trend. So it could be that a small boom will lead to small investors wanting to enter the market in droves at a stroke. Then funds are founded immediately and money is collected and then a big wave of capital comes into the markets. That would result in further price jumps to the top.

What is not yet completely foreseeable is the future of Libra. Facebook has announced that it wants to launch its own crypto currency. This will facilitate worldwide payment transactions and prevent currency fluctuations. However, the anonymity of Libra vis-à-vis the secret services should no longer be guaranteed. So it is not yet known what effects this will have, or whether Libra will even be realized.

As in any other market, there are opportunities and risks with crypto currencies. This must evaluate everyone for itself subjectively, information collect and then the decision make whether it is worthwhile itself to enter.

The latest news at the moment is, that China has forbidden to trade with Bitcoin within the country. But the large server farms will continue their work to generate the virtual money and to get a lot of it to the peopel´s republic.


All information without guarantee. This is not financial advice or other advice. I only give my subjective opinion on the subject.